COMMERCIAL COMBINED POLICY

Transcription

1 COMMERCIAL COMBINED POLICY INTRODUCTION Certification and extent of policy coverage This is to certify that in accordance with the authorisation granted to AC Insurance Consultants by International Insurance Company of Hannover Limited, hereafter referred to as Insurers, and in

2 consideration of the premium specified having been paid, Insurers agree to the extent and in the manner detailed, to indemnify the Insured against loss or Damage sustained or legal liability for accidents happening, which occur during the Period of Insurance and arising from the Business, as detailed in the Policy Schedule, after such loss, damage or liability has been proved. Provided always that: 1) Insurers liability shall not exceed the limits of liability expressed in the attaching Schedule or such other limits of liability as may be substituted by endorsement and agreed by or on their behalf; 2) this Policy insures only in respect the sections specified in the Policy Schedule. 3) this Policy is subject to all the provisions, conditions, warranties and exclusions which are contained within the body of the wording or that may be endorsed or added thereto, all of which are to be considered as incorporated and shall be read together Basis of this contract The Insured has applied for this Insurance by completing a proposal form or a statement of fact or made a declaration which is the basis of this contract and which is deemed to be incorporated herein. Insurers have relied upon the details contained in the proposal form or statement of fact to decide whether to accept this Insurance and to determine the terms of such acceptance. The Insured must ensure that all the statements in the proposal form or statement of fact are accurate and that they have not withheld any material facts otherwise this Insurance may be avoided A material fact is a fact likely to influence Insurers assessment of the risk. If you are in any doubt as to what constitutes a material fact you should consult your insurance intermediary. This Policy has been issued and signed on behalf of International Insurance Company of Hannover by AC Insurance Consultants F Pietrantonio Authorised signatory Dated: 01/09/2012

3 CUSTOMER INFORMATION Who is the Insurer? This Policy is underwritten by International Insurance Company of Hannover. They are registered in England, registration number Their Registered Office is 10 Fenchurch Street, London, EC3M 3BE, UK Who is the regulator? International Insurance Company of Hannover Limited is authorised and regulated by the Financial Services Authority No The Financial Services Authority (FSA) is the independent watchdog that regulates financial services, including insurance. What to do if you have a complaint: Any enquiry or concern about this Policy should be addressed in the first instance to Your insurance broker. If You are not satisfied, You may contact Insurers Compliance Officer at: International Insurance Company of Hannover Ltd 10 Fenchurch Street London EC3M 3BE UK Telephone Fax If You remain dissatisfied and wish to make a complaint, You may refer the matter at any time to: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR Telephone : Complaint.info@financial-ombudsman.org.uk

4 Your Right to Cancel You have the right to cancel the insurance Policy within 14 days of receiving the Policy documentation and receive a full refund of any premium paid, provided that there have been no claims either paid, reported or outstanding. For the purposes of this cancellation clause, it will be deemed that You will have received the Policy document upon the day following the date it was posted to the Insured by first class post. If the You do cancel this insurance within the initial 14 day period, then no cover will have been in place from the date of inception, as specified in the Schedule, and no liability whatsoever shall attach to the Insurers in respect of the Policy. If You do not exercise Your right of cancellation within the initial 14 day period, this insurance Policy will automatically come into force from the inception date specified in the Schedule. You will remain liable to pay the full annual premium. Following the expiry of the initial 14 day period, this insurance Policy may be cancelled at any time at Your written request and providing there has not been a claim Insurers will refund a proportionate part of Your premium. To exercise Your right to cancel, contact the broker who arranged this cover for You. The Law that Governs this Policy and Jurisdiction The parties to this contract are free to choose the law applicable to the contract. Unless specifically agreed to the contrary this insurance Policy shall be subject to English Law. The indemnity provided by this Policy shall apply only to judgements against the Insured in the Courts of Law of England and Wales, Scotland, Northern Ireland, the Isle of Man and the Channel Islands and not to judgements obtained elsewhere nor to Judgements or orders obtained in the said courts for enforcement of foreign judgements whether by way of reciprocal agreements or otherwise. The premium for this Policy has been calculated accordingly and no consideration has been paid in respect of sums payable under any other law or the jurisdiction of any other courts. The Law that Governs the interpretation of this Policy All disputes concerning the interpretation of this Policy are understood and agreed by both the Insured and the Insurers to be subject to English Law. Each party agrees to submit to the jurisdiction of any court of competent jurisdiction within England and to comply with all requirements necessary to give such court jurisdiction. All matters arising hereunder shall be determined in accordance with the law and practice of such court. This Policy should be read carefully and if it is incorrect return it immediately to your insurance advisor for alteration. This Policy should be kept in a safe place you may need to refer to it if you have to make a claim. It is recommended that you to retain details of your Employers Liability policy/certificates for at least 40 years. Page 4

5 GENERAL DEFINITIONS AND INTERPRETATIONS Any word or phrase specified hereunder to which a meaning is given has the same meaning wherever it appears in this Policy or any Schedule Endorsement or notice attached or issued by the Insurers unless specifically amended by any documentation issued by the Insurers Act of Terrorism means an act, including but not limited to the use of force or violence and/or the threat of thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. Business means business described in the Policy Schedule including (1) the ownership (including maintenance) of buildings specifically insured by this Policy (2) the provision and management of canteen social sports and welfare facilities for your Employees (3) first aid fire and ambulance services (4) private work carried out with your consent for you or any of your directors partners or other senior officials of your Business by any of your Employees within the Geographical Limits Costs and Expenses means (1) all costs and expenses recoverable by any claimant from you (2) the costs and expenses incurred with the written consent of the Insurers for (a) representation at any Coroner's Inquest or Inquiry in respect of any death (b) the defence of proceedings in any court brought against you in respect of breach or alleged breach of statutory duty resulting in Injury (3) all other costs and expenses of litigation incurred with the written consent of the Insurers relating to an occurrence which may give rise to indemnity Damage means loss destruction or damage Deductible means amount shown in the Schedule to any Section of this Policy being the amount of each and every claim which is not covered and for which you are considered to be your own insurer Employee means (1) any person under a contract of service or apprenticeship with You (2) a person under a contract of service or apprenticeship with some other employer and who is hire to or borrowed to You (3) a labour master or person supplied by him (4) a person engaged by a labour only sub contractor (5) a self-employed person working on a labour only basis under Your control or supervision (6) a driver or operator of hired-in plant (7) a trainee or person undergoing work experience (8) a voluntary helper (9) persons working under the Community Offenders Act 1978 Community Offenders (Scotland) Act 1978 or similar legislation (10) at your request outworkers or home workers employed under contracts to execute personally any work in connection with the Business whilst engaged in working for the Insured in connection with the Business Endorsement means any additional terms relating to the insurance provided by this Policy which are Page 5

6 (1) not within the Policy but attached to any Schedule issued by the Insurers or (2) within the Policy and stated in the Policy Schedule as applying to this Policy Geographical Limits means United Kingdom the Channel Islands and the Isle of Man Injury, applicable to all sections other than Section 13 Personal Accident which has a separate definition means death bodily injury illness disease or shock. Insured/you/your means person (s) and/or company(ies) named in the Policy Schedule Insurers means in respect of each Section insured by this Policy the insurer(s) stated in the Schedule applicable to said Section Money means (1) current currency (2) crossed and uncrossed (where applicable) (a) bankers drafts (b) national giro drafts and payment orders (c) postal and money orders (d) dividend warrants (e) cheques (other than pre signed blank cheques) (3) travellers cheques (4) national savings stamps and certificates (5) bus and rail travel cards and passes (6) telephone cards (7) current postage stamps and unused postal franking machine units (8) luncheon vouchers (9) gift tokens (10)trading stamps (11)national insurance stamps and stamped or impressed national insurance cards (12)holiday with pay stamps (13)premium bonds (14)VAT purchase invoices (15)credit card cheque card and debit card sales vouchers (16)savings stamps (17)consumer redemption vouchers Period of Insurance means period of insurance stated in the Policy Schedule and any subsequent period for which premium payment is made by you and is accepted by the Insurers Policy means policy wording together with all Schedules Endorsements and notices attached or issued by the Insurers Pollution means (1) pollution or contamination by naturally occurring or man made substances forces or organisms or any combination of them whether permanent or transitory and however occurring and (2) all loss destruction damage or Injury directly or indirectly caused by such pollution or contamination Premises means address of premises stated in the Schedule to each Section insured by this Policy but where no premises are so stated the address of premises shall be as stated in the Policy Schedule Products Page 6

7 means any commodity or article (including containers labelling instructions or advice provided in connection therewith) manufactured sold supplied repaired serviced tested financed constructed installed or processed by or on behalf of the Insured from or within the Geographical Limits in connection with the Business Schedule means most current Schedule issued to you by the Insurers Valuables means deeds bonds bills of exchange promissory notes stamp collections jewellery watches furs and fur skins precious stones and articles comprising of them Page 7

8 GENERAL EXCLUSIONS TO THIS POLICY (1) GENERAL The following Exclusions apply to all Sections of your Policy except Section 8 Employers' Liability This Policy does not cover any loss destruction damage business interruption loss or liability directly or indirectly caused by or contributed to by or arising from (a) Radioactive Contamination (i) ionising radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel (ii) the radioactive toxic explosive or other hazardous or contaminating properties of any nuclear installation reactor or other nuclear assembly or nuclear component thereof (iii) the use of any explosive nuclear weapon or device or the emission discharge dispersal or escape of fissile material emitting a level of radioactivity (iv) the emission discharge dispersal release or escape of any solid liquid or gaseous chemical compound which when suitably distributed is capable of causing incapacitating disablement or death amongst people or animals (v) the emission discharge dispersal release or escape of any pathogenic (disease producing) micro-organism(s) and chemically synthesised toxin(s) (including genetically modified organisms and chemically synthesised toxins). (b) (c) Pressure Waves pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds Pollution as defined in the General Definitions and Interpretations other than Pollution resulting in Damage to property insured by this Policy or interruption of or interference with the Business not otherwise excluded caused by any of the following perils Fire Explosion Aircraft Earthquake Riot Malicious Damage Storm or Flood Escape of Water Impact Sprinkler Leakage Theft or Subsidence all as defined in Section 1- Buildings and Contents of this Policy (2) WAR AND ACT OF TERRORISM This Policy does not cover any claim hereunder of whatsoever nature directly or indirectly occasioned by or happening through or in consequence of (a) (b) war invasion acts of foreign enemies hostilities or warlike operations (whether war be declared or not) civil war mutiny civil commotion assuming the proportions of or amounting to popular rising military rising insurrection rebellion revolution military or usurped power martial law confiscation or nationalisation or requisition or destruction of or damage to property by or under the order of any Government or public or local authority Act of Terrorism or any action taken in controlling preventing suppressing or in any way relating to any of the above riot civil commotion and (except in respect of Damage by fire or explosion) strikers locked out workers or persons taking part in labour disturbances or malicious persons in Northern Ireland other than in respect of the insurance provided by Section 8 Employers Liability Section 9 Public Liability and Section 10 Products Liability In any action suit or other proceedings where the Insurers allege that by reason of Policy Definition Act of Terrorism any claim hereunder is not covered by this Policy the burden of proving that such claim hereunder is covered shall be upon you Page 8

9 This Exclusion shall apply to all Sections of this Policy other than Section 8 Employers Liability to the extent that it is necessary to comply with the minimum requirements of the law in the United Kingdom of Great Britain and Northern Ireland including the Channel Islands and the Isle of Man relating to compulsory insurance of liability to employees and provided that the maximum Limit of Indemnity for any one claim or series of claims arising from one source or original cause shall not exceed 5,000,000 (3) DATE RECOGNITION FAILURE This Policy does not cover (1) Damage (2) interruption of or interference with the Business (3) legal liability other than Employers Liability (4) Costs and Expenses other than in connection with Employers Liability (5) Legal Expenses directly or indirectly caused by or consisting of or arising from the failure of any computer data processing equipment or media micro chip integrated circuit or similar device or any computer software whether the property of the Insured or not (a) (b) correctly to recognise any date as its true calendar date correctly to capture save retain and/or correctly to manipulate interpret or process any data or information or command or instruction as a result of treating any date otherwise than as its true calendar date (c) correctly to capture save retain or process any data as a result of the operation of any command which causes the loss of data or the inability correctly to capture save retain or process such data Provided that (1) and (2) shall not apply to (i) subsequent Damage or (ii) subsequent interruption of or interference with the Business not otherwise excluded which results from any of the following perils Fire Explosion Aircraft Earthquake Riot Malicious Damage Storm or Flood Escape of Water Impact Sprinkler Leakage Theft or Subsidence all as defined in Section 1- Buildings and Contents of this Policy (4) ELECTRONIC DATA This Exclusion applies to all Sections of this Policy other than Section 8 Employers Liability Section 9 Public Liability and Section 10 Products Liability This Policy does not cover loss destruction damage or business interruption loss directly or indirectly occasioned by or happening through or in consequence of Computer Virus(es) or from erasure or corruption or alteration of Electronic Data Computer Virus means a corrupting instruction that propagates itself via a computer system or network Electronic Data means facts concepts and information converted to a form useable for communications interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment Provided that this Exclusion shall not apply to Damage or interruption of or interference with the Business not otherwise excluded which results from any of the following perils Fire Explosion Aircraft Earthquake Riot Storm or Flood Escape of Water Impact or Sprinkler Leakage all as defined in Section 1 Buildings and Contents and stated as insured in the Schedule applicable to that Section Page 9

10 GENERAL CONDITIONS TO THIS POLICY The following Conditions apply to all Sections of your Policy and you must comply with them or your Policy may not be in force If you need to notify Insurers of a claim or of any circumstances or incident which may cause a claim under all sections other than Section 13 Personal Accident you should contact your professional intermediary or alternatively your appropriate Insurer through OIM UNDERWRITING LTD 117 FENCHURCH STREET LONDON EC3M 5DY TELEPHONE NUMBER With regards to any claim under Section 13 Personal Accident you should contact immediately VAN AMEYDE UK LTD 34 THE MALL, BROMLEY KENT BR1 1TS TELEPHONE NUMBER (1) PROCEDURE FOR NOTIFYING CLAIMS If any event happens which may give rise to a claim being made under this Policy you must (a) notify the Insurers as soon as possible and give full details of the occurrence (b) inform the police immediately of any malicious damage or of the theft or loss of any property or Money (c) forward to the Insurers immediately on receipt and without answering it any letter claim writ summons or process (d) send to the Insurers at your own expense a written claim together with such detailed particulars and proofs certificates or other documents as may reasonably be required by the Insurers and send also details of any other insurance covering the loss destruction damage Injury or liability for which you are claiming indemnity under this Policy within (i) seven days of Damage caused by riot civil commotion strikes labour disturbances or malicious persons (ii) 30 days of the expiry of the Indemnity Period in the event of a claim under the Business Interruption Section of this Policy (iii) 30 days of Damage by any other cause or Injury insured by this Policy (e) take all reasonable steps to diminish or avoid the Damage and to minimise any interruption of or interference with the Business or Bodily Injury (f) not negotiate with nor make any admission of liability nor offer payment or promise to any party without the Insurers' written consent (g) all medical records, notes and correspondence referring to a claim or related pre-existing condition relating to any Accident shall be made available on request to any medical advisor appointed by or on behalf of the Insurers and such medical advisor shall, for the purpose of reviewing the claim, be allowed so often as may be deemed necessary to make an examination of the Insured. (h) seek the attention of a duly qualified medical practitioner in the event of any Accident resulting in Bodily Injury or death (2) FRAUD All benefit under this Policy will be forfeited if any claim made is in any respect fraudulent or if any fraudulent means are used by you or anyone else acting on your behalf to obtain any benefit under this Policy (3) SUBROGATION In the event of any claim under this Policy you shall at the Insurers' request and expense take and permit to be taken all necessary steps for enforcing rights against any other party in your name before or after any payment is made by the Insurers (4) THE INSURERS' RIGHTS If any event happens which may give rise to a claim under this Policy the Insurers will be entitled to Page 10

11 (a) (b) (c) enter the building where Damage has occurred and to take and keep possession of damaged property insured herein and to deal with the salvage in a reasonable manner and this Condition shall be proof of your consent for such purpose - no property may be abandoned to the Insurers exercise sole conduct and control over the defence or settlement of any claim made upon you or any other person covered by this Policy by any other party prosecute in your name or the name of any other person covered by this Policy but for the Insurers' benefit any claim for damages or indemnity (5) OTHER INSURANCE If at the time of any Injury or Damage there be any other insurance (a) covering the whole or part of such Injury or Damage whether effected by the Insured or not then the Insurers shall not be liable to pay or contribute more than their rateable proportion of the total payment made for such Injury or Damage (b) on any of the property insured herein either alone or together with any other property which shall be subject to any condition of average or is limited in respect of the value of any article or the total amount is divided in respect of said property then this Policy may at the option of the Insurers be held to contain the same condition of average limit of value and division of amount pro rata (c) which more specifically insures property insured herein this Policy will not apply except in respect of any amount over and above that recoverable under such more specific insurance This Condition does not apply to any personal accident benefit provided under this Policy in respect of death or injury to any insured person (6) EFFECT OF CLAIMS ON SUMS INSURED Except where otherwise provided for under any Section of this Policy (a) the Sums Insured in this Policy will be reduced until expiry of the Period of Insurance by the amount of any loss destruction damage interruption or interference with your Business (b) if any Sum Insured is subject to an Underinsurance Condition and further claims arise before expiry of the Period of Insurance the application of such Underinsurance Condition may have the effect of increasing the proportion of the loss which you will have to bear (c) on request and if not otherwise provided for under any Section of this Policy following a claim the Insurers will consider reinstating the original Sums Insured subject to any additional premium revised terms and further precautions that may be necessary (7) RECOVERY OF LOST OR STOLEN PROPERTY If any lost or stolen property which is the subject of a claim under this Policy is recovered you must inform the Insurers as soon as reasonably possible by recorded delivery letter If the property is recovered before the payment of the claim for loss of that property you must reclaim such property and the Insurers will then indemnify you under the terms of this Policy for any damage sustained to such property If the property is recovered after payment of the claim for loss of that property the property will then belong to the Insurers but you will have the option of retaining the property and refunding to the Insurers any claim payment the Insurers have made for the property subject to any appropriate adjustment for damage to the property (8) ARBITRATION If the Insurers accept liability for a claim under this Policy but there is a dispute in respect of the amount to be paid the dispute will be referred to an arbitrator appointed in accordance with the relevant law in force at the time In these circumstances the arbitrator's award must be made before there is any right of action against the Insurers (9) COMPLIANCE WITH TERMS The Insurers' liability to make any payment under this Policy is conditional on (a) the compliance with this Policy's terms and conditions by you or any person claiming indemnity or benefit under this Policy (b) the truth accuracy and completeness of all information supplied to the Insurers in connection with this insurance (10)PRECAUTIONS Page 11

12 You must (a) take all reasonable precautions to safeguard any property insured by this Policy against Damage and to prevent Injury or loss or destruction of or damage to other property (b) exercise reasonable care in the selection and supervision of your Employees (c) take all reasonable steps to comply with all statutory and other obligations and regulations imposed by any authority (d) maintain the Premises and all other property insured in a sound condition (e) take all reasonable steps to minimise Bodily Injury (11)WORKMEN AND ALTERATION TO THE PREMISES OR BUSINESS Workmen and tradesmen are allowed in or about the Premises for maintenance purposes and for undertaking minor repairs and alterations without affecting this insurance but the Insurers have insured you on the basis of information supplied and cover under this Policy will cease if (a) there are changes to the Premises or the building in which it is located or to your Business which may increase the risk of loss destruction damage liability accident or Injury (b) there are changes in the occupancy or use of the Premises (c) your interest in the Premises or your Business ceases (d) your Business is wound up or carried on by a liquidator or receiver or permanently discontinued unless you have notified the Insurers within a reasonable time and the Insurers have agreed to such changes in writing (12)PREMIUM ADJUSTMENT If any part of the premium is calculated on estimates you shall keep an accurate record containing all relevant particulars and shall at any time allow the Insurers to inspect such record You shall within one month after the expiry of each Period of Insurance supply particulars and information as the Insurers may require and the premium for such period shall be adjusted subject to any minimum premium (13)INSTALMENTS If the premium for this Policy is payable by instalments it is a condition precedent to the Insurers' liability that each instalment shall be paid when due otherwise all benefit under this Policy shall be forfeited from the date when such instalment was due (14) CANCELLATION The Insurers may cancel this Policy by sending seven days' notice by recorded delivery letter to you at your last known address and making a proportionate return of premium for any unexpired Period of Insurance for which you have paid Where a claim has been made during the current Period of Insurance the full annual premium will still be payable despite cancellation of cover and Insurers reserve the right to deduct this from any claim payment (15)TAX In addition to the premium you will pay to the Insurers any tax due on the premium which the Insurers are required to collect will be incorporated in accordance with current legislation (16) DATA PROTECTION ACT 1998 It is agreed by the Insured that any information provided to the Insurer regarding the Insured for the purpose of accepting insurance and handling any claims may if necessary be divulged to third parties provided that it will be processed by the Insurer in compliance with the provisions of the Data Protection Act 1998 (17) CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 A person or company who was not party to this Policy has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Policy but this Condition does not affect any right or remedy of a third party which exists or is available other than by virtue of this Act Act 1998 Page 12

13 SECTION 1 BUILDINGS AND CONTENTS INSURING CLAUSE If any Property suffers Damage This Section applies only if stated as INSURED in the Policy Schedule (1) by any Peril shown in the Schedule applicable to this Section (2) during the Period of Insurance the Insurers will pay to you an amount calculated in accordance with the Basis of Payment or at their option will reinstate or replace your Property or any part of it which is lost destroyed or damaged DEFINITIONS TO THE BUILDINGS AND CONTENTS SECTION NB For the purpose of determining where necessary the definition within which any property is insured the Insurers agree to accept the designation under which such property has been entered in your books Property means Item(s) of property described in the Schedule applicable to this Section including those defined below Perils means perils shown in the Schedule applicable to this Section Specific Perils means Perils defined below and stated in the Schedule applicable to this Section except Accidental Loss PROPERTY DEFINITIONS Buildings means buildings which you use for your Business at the Premises stated in the Schedule applicable to this Section and includes at the same address (1) landlords' fixtures and fittings (2) outbuildings extensions annexes and gangways (3) walls gates and fences (4) yards and car parks (5) telephone gas water and electric installations piping ducting cables wires and associated control gear and accessories extending to the public mains which you are responsible to repair or reinstate Rent means rent of the buildings but excluding any element of charge for utilities Contents means machinery plant fixtures fittings utensils and all other contents relating to your Business at the Premises stated in the Schedule applicable to this Section whether belonging to you or held in your care and for which you are responsible and includes at the same address (1) tenants' improvements alterations and decorations (2) contents in outbuildings extensions annexes and gangways (3) contents in open yards to the extent that cover by this Section provides (4) Money for an amount not exceeding 5% of the Sum Insured for Contents stated in the Schedule applicable to this Section or 500 whichever is the lesser (5) documents manuscripts and business books but only for the value of the materials as stationery and the cost of clerical labour expended in writing up excluding (a) any expense in connection with producing information to be recorded in them (b) the value to you of the information contained in them (6) computer systems records Page 13

14 (a) only for the value of the materials and the cost of clerical labour and computer time expended in reproducing such records (b) limited to 5,000 during any one Period of Insurance excluding (i) any expense in connection with producing information to be recorded in them (ii) the value to you of the information contained in them (7) patterns models moulds plans and designs (8) in so far as they are not insured elsewhere your Employees' directors' visitors' and guests' pedal cycles and personal effects (except motor vehicles) for an amount not exceeding 250 for any one pedal cycle and 500 for all other personal effects of any one Employee director visitor or guest Contents excludes (1) landlords' fixtures and fittings (2) Stock (3) any property excluded by Exclusion (15) or under the definition of Theft to this Section (4) Computers (5) Electronic Office Equipment Stock means stock and materials in trade whether belonging to you or held in your care and for which you are responsible in connection with your Business at the Premises excluding property otherwise insured by this Section Computers means all computer equipment used for the storage and communication of electronically processed data Electronic Office Equipment means all photocopiers fax machines portable telephones video recorders and video cameras and associated equipment all belonging to the Insured or held by the Insured in trust for which the Insured is responsible PERILS DEFINITIONS Fire means (1) fire excluding loss or destruction of or damage to property caused by (a) explosion resulting from fire (b) earthquake (c) any property's (i) own spontaneous fermentation or heating or (ii) undergoing any heating process or any process involving the application of heat (2) lightning (3) explosion (a) of boilers (b) of gas used for domestic purposes only excluding Damage caused by earthquake Explosion means for the purposes of this Section explosion excluding Damage by (1) fire resulting from explosion (2) explosion (a) of boilers (b) of gas used for domestic purposes only Aircraft Page 14

15 means aircraft or other aerial devices or articles dropped from them excluding Damage by fire Earthquake means earthquake Riot means riot civil commotion strikers locked out workers or persons taking part in labour disturbances or malicious persons acting on behalf of or in connection with any political organisation excluding Damage (1) arising from cessation of work (2) by fire caused by strikers locked out workers persons taking part in labour disturbances or malicious persons (3) occasioned by or happening through confiscation or destruction or requisition by order of the government or any public authority Malicious Damage means Damage caused by malicious persons excluding Damage (1) arising from cessation of work (2) by fire (3) by theft (4) caused by persons acting on behalf of or in connection with any political organisation Storm or Flood means storm or flood excluding Damage by lightning frost subsidence ground heave or landslip Escape of Water means escape of water from any tank apparatus or pipe excluding Damage by water from any automatic sprinkler installation Impact means impact by any road vehicle or animal Sprinkler Leakage means accidental escape of water from any automatic sprinkler installation at the Premises excluding Damage caused by (1) freezing while the Premises are (in so far as they are in your ownership or tenancy) empty or not in use (2) explosion earthquake or heat caused by fire Subsidence means subsidence or ground heave of any part of the site on which the Premises stands or landslip excluding Damage (1) to yards car parks roads pavements walls gates or fences unless also affecting buildings insured by this Section (2) caused by or consisting of (a) settlement or movement of made up ground (b) coastal or river erosion (c) defective design or workmanship or the use of defective materials (d) fire explosion earthquake or the escape of water from any tank apparatus or pipe (3) which originated prior to the inception of this cover (4) resulting from (a) demolition construction structural alterations or repair of any property at the Premises (b) groundworks or excavation at the Premises Theft means theft of Property (including loss or destruction of or damage to Buildings or Contents caused in the course of theft or attempted theft) while the Property is within any building (or part thereof) occupied by You at the Premises Page 15

16 excluding (1) theft which does not involve (a) entry to or exit from the building or attempt thereat by forcible and violent means (b) hold up accompanied by violence or threat of violence at the Premises (2) Damage caused by any person lawfully on the Premises (3) loss or destruction of or damage to (a) property in any open space or in any outbuilding not communicating with the main building at the Premises (b) Money manuscripts plans patterns models moulds designs coin or token operated gaming amusement or vending machines or the contents of any of them or documents of title unless specifically stated as insured in the Schedule applicable to this Section (c) any cash register when the Premises are closed for business unless the drawer has been left open Accidental Loss means accidental loss destruction or damage excluding Damage (1) by any Peril Defined herein other than Accidental Loss (2) which would not be insured as a consequence of any of the exclusions to the Defined Perils herein BASIS OF PAYMENT Insurers' liability under this Section will not exceed (1) the Sum Insured for each Item (2) in total the Total Sum Insured in the Schedule applicable to this Section UNDERINSURANCE CONDITION If at the time of Damage the value of the Property or the total value of all Property for which one Sum Insured is stated in the Schedule applicable to this Section exceeds that Sum Insured you will be your own insurer for the difference and will bear a rateable share of the loss accordingly EXCLUSIONS TO THE BUILDINGS AND CONTENTS SECTION This Section does not cover (1) Deductible the amount stated as the Deductible for each Peril shown in the Schedule applicable to this Section (2) Inbuilt defect wear tear and defective workmanship Damage to property caused by or consisting of (a) inbuilt or latent defect gradual deterioration wear and tear its own faulty or defective design or materials (b) faulty or defective workmanship operational error or omission on your part or that of any of your Employees but subsequent Damage which itself results from a cause not excluded elsewhere in this Section or Policy is covered under this Section (3) Frost Damage caused by or consisting of frost but subsequent Damage which itself results from a cause not excluded elsewhere in this Section or Policy is covered under this Section (4) Corrosion or change in temperature Damage caused by or consisting of (a) corrosion rust wet or dry rot shrinkage evaporation contamination loss of weight dampness dryness marring scratching denting vermin or insects (b) change in temperature colour flavour texture or finish Page 16

17 but the following is covered under this Section (i) such Damage not excluded elsewhere in this Section or Policy which itself results from any Specific Peril or from any other accidental cause (ii) subsequent Damage which itself results from a cause not excluded elsewhere in this Section or Policy (5) Joint leakage or breakdown Damage consisting of (a) joint leakage or failure of welds cracking fracturing collapse or overheating of boilers economisers superheaters pressure vessels or any range of steam or feed piping connected to them (b) mechanical or electrical breakdown or derangement in respect of the particular machine apparatus or equipment in which breakdown or derangement originates but the following is covered under this Section (i) such Damage not excluded elsewhere in this Section or Policy which itself results from any Specific Peril (ii) subsequent Damage which itself results from a cause not excluded elsewhere in this Section or Policy (6) Subsidence ground heave or landslip Damage caused by or consisting of subsidence ground heave or landslip unless resulting from Fire Explosion Earthquake or Escape of Water except in so far as Subsidence may be insured by this Section (7) Change in the water table level Damage attributable to change in the water table level (8) Settlement of new structures Damage caused by or consisting of normal settlement or bedding down of new structures (9) Theft fraud or dishonesty Damage caused by or consisting of theft or attempted theft where any person in your employment or service or any member of your family are concerned as principal or accessory (10) Collapse of buildings Damage to a building or structure caused by its own collapse or cracking unless resulting from a Specific Peril (11) Property in the open Damage to moveable property in the open fences or gates caused by theft wind rain hail sleet snow flood or dust (12) Processing Damage to any property (other than by Fire or Explosion) resulting from its undergoing any process of production packing treatment testing commissioning servicing cleaning dyeing or repair (13) Empty Buildings Damage in respect of any Buildings which are empty or not in use caused (a) by freezing (b) by escape of water from any tank apparatus or pipe (c) by malicious persons (other than by Fire or Explosion) (d) in the course of Theft or attempted Theft (14)Riot or civil commotion caused by riot or civil commotion except in so far as Riot is insured by this Section (15) Excluded Property (a) unless Damage is caused by a Specific Peril (i) valuables precious stones precious metals bullion curiosities works of art or rare books (ii) property in transit Page 17

18 (b) (iii) glass china earthenware marble or other fragile or brittle objects (iv) Money bonds credit cards or securities of any description unless specifically stated as insured in the Schedule applicable to this Section (i) vehicles licensed for road use (and accessories on them) caravans trailers railway stock watercraft or aircraft (ii) property or structures in course of construction or erection and materials or supplies in connection with all such property in course of construction or erection (iii) land roads pavements piers jetties bridges culverts or excavations (iv) livestock growing crops or trees (16) Machinery requiring statutory inspection Damage caused by explosion of and originating in any vessel machinery or apparatus or its contents belonging to you or under your control which is required to be inspected to comply with any regulations or statutory provisions unless such vessel machinery or apparatus is the subject of a policy or other contract providing the required inspection service (17) Steam pressure apparatus Damage caused by or consisting of the bursting of a boiler (not being a boiler used for domestic purposes only) economiser or other vessel machine or apparatus in which internal pressure is due to steam only and belonging to you or under your control but subsequent Damage which itself results from a cause not excluded elsewhere in this Section or Policy is covered under this Section (18) Self ignition of electrical apparatus to any electrical apparatus or wiring caused by its own self ignition but this Exclusion shall only apply to that part of the electrical apparatus or wiring in which the self ignition occurs (19) Property insured by other insurance any property which at the time of Damage is insured by a more specific insurance SPECIAL CONDITIONS TO THE BUILDINGS AND CONTENTS SECTION (1) Reinstatement Basis of Payment This Condition applies only when Reinstatement Basis of Payment (R) is stated against any Item in the Schedule applicable to this Section Subject to the undernoted provisions the basis upon which the amount payable in respect of any Item to which this Condition applies (other than motor vehicles and their accessories Employees directors' visitors' and guests pedal cycles and personal effects) is to be calculated shall be the reinstatement of the property lost destroyed or damaged For this purpose reinstatement means (a) the rebuilding or replacement of property lost or destroyed which provided the liability of the Insurers is not increased may be carried out (i) in any manner suitable to your requirements (ii) upon another site (b) the repair or restoration of property damaged in either case to a condition equivalent to or substantially the same as but not better or more extensive than its conditions when new Provided that (i) The liability of the Insurers for the repair or restoration of property damaged in part only shall not exceed the amount which would have been payable had such property been wholly destroyed (ii) If at the time of reinstatement the sum representing 85% of the cost which would have been incurred in reinstating the whole of the property insured by any Item subject to this Condition exceeds its Sum Insured at the commencement of any Damage the liability of the Insurers shall not exceed that proportion of the amount of the Damage which the said Sum Insured shall bear to the sum representing the whole of such property at that time (iii) No payment beyond the amount which would have been payable in the absence of this Condition shall be made Page 18

19 (A) (B) (C) unless reinstatement commences and proceeds without unreasonable delay until the cost of reinstatement shall have been actually incurred if the property insured by any Item at the time of its Damage shall be insured by any other insurance effected by or on your behalf which is not upon the same basis of reinstatement (2) Day One Value Basis This Condition applies only when Day One Value Basis (DOVB) is stated against any Item in the Schedule applicable to this Section (a) The Insured having stated in writing the Declared Value incorporated in each Item to which this Condition applies the premium has been calculated accordingly Declared Value means your assessment of the cost of reinstatement of the property insured by any Item arrived at in accordance with paragraph (a) of Special Condition (1) at the level of costs applying at the inception of the Period of Insurance (ignoring inflationary factors which may operate subsequently) together with in so far as the insurance by the Item provides due allowance for (i) the additional cost of reinstatement to comply with Public Authority requirements (ii) professional fees (iii) debris removal costs (b) At the inception of each Period of Insurance the Insured shall notify the Insurers of the Declared Value of the property insured by each of the said Item(s) (c) In the absence of such declaration the Declared Value for the previous Period of Insurance shall be increased by a percentage determined by the Insurers and the resultant figure shall be taken as the Declared Value for the ensuing Period of Insurance Proviso (ii) of Special Condition (1) is amended to read If at the time of Damage the Declared Value of the property insured by such Item be less than the cost of reinstatement (as defined above) at the inception of the Period of Insurance then the Insurers liability for any Damage shall not exceed that proportion thereof which the Declared Value bears to the cost of reinstatement (3) Stock Declaration This Condition applies only when Stock Declaration Condition (SDC) is stated against any Item in the Schedule applicable to this Section The insurance on Stock is subject to the following (a) The premium is provisional being 75% of the estimated premium and shall on the expiry of each Period of Insurance be adjusted as hereinafter provided (b) The value of the Stock on the last day of each calendar month shall be declared by you within 30 days thereafter and if a declaration be not so given you shall be deemed to have declared the Sum Insured as the value (c) On the expiry of each Period of Insurance the actual premium shall be calculated at the rate applicable on the total of the amounts declared divided by the number of declarations If the actual premium be greater than the provisional premium you shall pay the difference If it be less the difference shall be paid to you but such payment shall not exceed 1/3rd of the first or annual premiums respectively (d) In consideration of the Sum Insured not being reduced by the amount of any loss you shall pay the appropriate additional premium on the amount of the loss from the date thereof to the expiry of the Period of Insurance (4) Index Linking This Condition only applies when Index Linking (IL) is stated against any Item in the Schedule applicable to this Section (5) Rent The Sum Insured (and the Declared Value where appropriate) on any Item will be increased by a percentage determined by the Insurers and such revised Sum Insured (and Declared Value) in the absence of advice from you to the contrary will be deemed to apply for the ensuing Period of Insurance Page 19

20 Any insurance of Rent applies only if the Buildings or any part thereof is unfit for occupation in consequence of its Damage and then the amount payable shall not exceed such proportion of the Sum Insured on Rent as the period necessary for reinstatement bears to the term of Rent insured (6) Subrogation Waiver In the event of a claim arising under this Section the Insurers agree to waive any rights remedies or relief to which they may become entitled by subrogation against any company (a) in the relation of holding company or subsidiary to you (b) which is a subsidiary of a parent company of which you are yourself a subsidiary in each case within the meaning of the relevant companies' legislation current at the time of the Damage (7) Non Invalidation The insurance by this Section will not be made invalid by any act omission or alteration which unknown to you or beyond your control increases the risk of Damage provided that you (a) notify the Insurers immediately you become aware of such act omission or alteration and (b) pay any additional premium that the Insurers may require (8) Automatic Reinstatement of Sum Insured In the absence of written notice by the Insured or the Insurers to the contrary within 30 days of the occurrence of any Damage the Sums Insured by this Section shall not be reduced by the amount of any loss and the Insured shall pay the appropriate premium for such automatic reinstatement of cover provided that (a) (b) the Insured shall carry out any reasonable recommendations put forward by the Insurers to prevent further loss in respect of Damage by Theft (if insured) the automatic reinstatement shall apply on the first occasion only in each Period of Insurance IN ADDITION THE INSURERS WILL PROVIDE COVER UNDER THIS SECTION AS FOLLOWS Professional Fees The cover under this Section for Buildings and Contents includes necessary architects surveyors consulting engineers legal and other fees you incur in reinstating your Property following its Damage as insured by this Section but not for preparing any claim Provided that the Insurers' liability for Damage and professional fees will not exceed in total the Sum Insured for each Item in the Schedule applicable to this Section Debris Removal Costs The insurance by each Item in the Schedule applicable to this Section includes necessary costs and expenses you incur with the Insurers' consent in (1) removing debris from (2) dismantling and/or demolishing (3) shoring up or propping Provided that the Insurers' liability for Damage and debris removal costs will not exceed in total during any one Period of Insurance the Sum Insured stated for each Item in the Schedule applicable to this Section Underground Services (1) Accidental loss or destruction of or damage not otherwise excluded to underground water gas oil drain or sewer pipes and underground electricity or telephone cables which extend from the Premises to the public mains and which you are responsible to repair or reinstate (2) Costs and expenses incurred in clearing and cleaning drains gutters sewers drain inspection covers and similar underground service areas for which you are responsible in consequence of any peril insured by this Section Provided that the liability of the Insurers hereunder shall not exceed 10,000 in any one Period of Insurance Local Authorities Page 20